Money flowing back into super after strong 2012

Australian superannuation funds recorded their first double-digit growth in three years, as the share market jumped.

Superannuation research group SuperRatings says balanced funds delivered growth of 11.7 per cent in 2012.

Australian and international shares were the biggest drivers of the result, with returns of 17.9 per cent and 13.6 per cent, respectively.

The founder and chairman of SuperRatings, Jeff Bresnahan, says the second half of last year was particularly strong.

"It's the best return since 2009, when there was a 12.9 per cent return, and that followed on from an absolutely disastrous 2008, when the average super fund lost about 20 per cent in the calendar year," he observed.

"So it's been a little bit topsy-turvy in the last five years - negative followed by a couple of positives, a very small negative in 2011, but the super funds have bounced back extremely well in 2012."

Mr Bresnahan warns there is no guarantee such positive returns will be sustained this year.

"It's ironic that in 2012, when we had all this negative news around the world, that share markets boomed. Certainly it'd be lovely to see that rally continue through 2013, but who knows what's around the corner?" he added.

"I mean all we know at the moment is the first half of the financial year has been incredibly solid, so hopefully we can run that right through to June this year."

Mr Bresnahan says a lack of confidence in superannuation, mostly due to recent poor returns, plus changes to some of the concessional taxation of voluntary contributions have meant people are not putting too much more than the required 9 per cent into their super funds.

"Since 2007, voluntary contributions to super are down around 65 or 70 per cent, which is massive, and we haven't seen any confidence in the system since. I think we're starting to see that change now," he said.